Peru

Overview

Peru is Canada's oldest bilateral FTA partner in South America — the Canada-Peru Free Trade Agreement entered into force on August 1, 2009, predating the Canada-Colombia FTA by two years. Total bilateral goods trade of approximately C$8.1B (2024, Global Affairs Canada) CAD in 2024 with a substantial Canadian surplus reflects a relationship dominated by Canadian mining exports (capital equipment, inputs) and investment flows. Peru is the world's second-largest copper producer and a major producer of zinc, silver, gold, and lead — making it one of the most important destinations for Canadian mining investment globally, with cumulative Canadian FDI in the billions.

Canadian mining companies with major Peruvian operations include HudBay Minerals (Constancia copper mine, Cusco), Kinross Gold (La Coipa, though primary Peruvian assets have evolved), and First Quantum Minerals (development stage). The bilateral relationship is economically compelling but operationally complex: Peru's political environment has become increasingly volatile since 2018, with five presidents in five years, a failed presidential coup attempt (December 2022), and persistent social conflict at and around mining operations. Community opposition and social licence failures have blocked or delayed multiple major Canadian and international mining projects, creating a challenging investment environment despite Peru's world-class mineral endowment.

Political Context

GovernmentBoluarteDina Boluarte (since Dec 2022)Political StabilityVery Low5 presidents in 5 yearsNext ElectionApril 2026General electionFTA StatusIn ForceCanada-Peru FTA since 2009Mining PolicySupportiveMining as GDP pillarSocial ConflictHighCommunity opposition ongoing

Peru's political environment has been exceptionally turbulent. Since 2018, Peru has had five presidents — including the failed self-coup attempt by President Castillo in December 2022, which led to his removal and imprisonment. Dina Boluarte, former vice president, has governed since December 2022, surviving multiple impeachment attempts. The formal policy environment remains pro-mining (Peru is constitutionally structured around extractive industry revenue), but the executive's weak political position limits its ability to resolve social conflicts at mine sites or accelerate environmental permitting. April 2026 general elections will be closely watched by Canadian mining investors.

Economic Profile

GDP$0.27TUSD, 2024 (IMF)GDP Growth+2.5%2024 (IMF)Copper Output#2Global copper producerMining Share10%% of GDP (direct)Inflation2.4%2024 (INEI) — stableCredit RatingBaa1 / BBBMoody's / S&P (investment grade)

Peru maintains investment-grade sovereign credit despite its political turbulence — a testament to the strength of its macroeconomic policy framework, the Central Reserve Bank of Peru's independence, and the significance of mining exports to government revenue and foreign exchange earnings. Mining accounts for approximately 10% of GDP directly and over 60% of goods export revenue — Peru's fiscal stability is fundamentally linked to international copper, zinc, gold, and silver prices. The energy transition's copper demand is Peru's single largest long-term economic tailwind.

Bilateral Trade

Total Bilateral Trade~C$8.1B (2024, Global Affairs Canada)CAD goods, 2024 (StatCan)Canadian Exports~$2.25B2024 (StatCan)Canadian Imports~$0.75B2024 (StatCan)Trade Balance+$1.5BCanadian surplusCanadian Mining FDIBillionsLargest foreign mining investorFTA in ForceAug 2009Canada-Peru FTA

Key Canadian exports to Peru include mining capital equipment and consumables (ball mills, crushing equipment, reagents, safety equipment), aircraft components, telecommunications equipment, and agricultural inputs. The large Canadian surplus reflects the capital goods-intensive nature of Canadian mining investment in Peru — Canadian companies export equipment and technology to operate their Peruvian mines. Key Peruvian exports to Canada include copper concentrate, zinc, gold, fish meal and fishoil, fresh produce (asparagus, blueberries, grapes), and textiles.

Market Access

Canada-Peru FTA In Force — August 1, 2009The Canada-Peru Free Trade Agreement, in force since August 1, 2009, was Canada's first South American bilateral FTA. The agreement eliminates tariffs on the vast majority of goods, provides investment protection (ISDS), services access, and includes parallel agreements on Labour Cooperation and the Environment. Peru eliminated or phased out tariffs on most Canadian goods including mining capital equipment, machinery, agri-food, and manufactured goods.Practical note: The FTA's investment protection provisions (ISDS) have been actively used by Canadian mining companies in disputes with the Peruvian government over project permitting and social conflict management. Several Canadian companies have filed or threatened ISDS claims — a dimension of the bilateral relationship that Canadian businesses should understand before entering the Peruvian mining sector.Full FTA guide — Peru market accessTARIFF REFERENCE

Look up import and export tariff rates for goods traded between Canada and Peru.

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Opportunity Assessment

Critical Minerals — STRONG (Established)Peru is the world's second-largest copper producer — a position that will become more strategically significant as global copper demand grows with electrification. Canadian miners (HudBay Constancia, future First Quantum developments) have established operational and development-stage presence. The energy transition's copper demand is Peru's — and Canadian mining companies' — primary long-term tailwind.Mining Supply Chain — STRONGCanadian mining equipment, technology, and services companies have established Peruvian market presence through relationships with Canadian mine operators. As Peru's mining sector grows, so does demand for high-quality extraction technology, environmental remediation services, and mine safety equipment — categories where Canadian companies have competitive strengths.Agri-food — SELECTIVEPeru exports significant volumes of high-value fresh produce to Canada — asparagus, blueberries, avocados, grapes — through FTA preferences. Canadian grain and protein exports to Peru (wheat, lentils) have grown with FTA implementation. Peru's growing middle class creates additional consumer market opportunities for Canadian branded food products.New Mining Development — CAUTIONSeveral large-scale Canadian mining projects in Peru face social licence challenges, community opposition, and environmental permitting delays. Tía María (Southern Copper, not Canadian), Conga (Newmont) — both blocked by community opposition — demonstrate the real and sustained risk to new project development in Peru. Canadian developers of new Peruvian projects must invest heavily in community consultation from the earliest stages.Infrastructure — WATCHPeru has a substantial public-private infrastructure deficit — roads, ports, water, energy — and an active PPP programme. Canadian engineering, construction, and project finance companies have participated in Peruvian infrastructure projects. The FTA's investment provisions and EDC support structures facilitate Canadian infrastructure engagement.Clean Energy — EMERGINGPeru has significant renewable energy potential — solar (Atacama proximity), wind, and hydroelectric. Canadian cleantech and energy companies can participate in Peru's ongoing renewable energy auctions, supported by FTA investment protections and FinDev Canada's development finance mandate in the region.07

Canadian Business Presence

HudBay Minerals (Toronto) operates the Constancia copper-molybdenum mine in the Cusco region — one of Peru's largest copper operations and one of HudBay's primary revenue-generating assets. Constancia's continued operation and the Pampacancha deposit development make HudBay among the most significant Canadian companies in Peru by production value. Kinross Gold has had Peruvian operating history, though its Peruvian portfolio has evolved through asset sales and acquisitions. First Quantum Minerals has development-stage interests in Peruvian copper exploration. Scotiabank Peru is one of Peru's largest banks, with a full retail and commercial banking platform serving Peruvian consumers, businesses, and Canadian mining companies operating in-country. Scotiabank's Peruvian network is Canada's most significant financial institution presence in Latin America and provides Canadian mining clients with local banking, FX, and trade finance services.

Risk Register

Risk Category	Level	Assessment
Political	High	Five presidents in five years; failed coup; persistent impeachment threats against current president. Formal policy remains pro-mining but political instability creates unpredictable regulatory environment and weakens government capacity to resolve social conflicts at mine sites.
Social Conflict	High	Community opposition to mining projects — particularly those affecting water resources and indigenous territories — is a persistent and well-organized risk in Peru. Multiple major international projects have been blocked or suspended by community opposition. Obtaining and maintaining social licence requires sustained multi-year community investment programs.
Regulatory	Elevated	Environmental permitting is increasingly complex and lengthy. Regulatory agencies (SERNANP, ANA) have become more demanding under political pressure from social movements. ISDS provisions provide backstop investment protection but are expensive and slow to invoke.
Commercial	Moderate	Peru maintains investment-grade credit; contracts are generally enforceable through the legal system. Scotiabank and other financial institutions provide reliable banking services. Currency (PEN) is managed by an independent central bank with a credible inflation targeting framework — lower currency risk than peers.
Security	Elevated	Urban crime is a significant concern in Lima and other cities. Remote mine site security requires active management. Organized crime involvement in informal mining ("artisanal" mining) can create conflicts with formal operators. Shining Path remnants remain active in limited coca-growing regions.
CSR / Reputational	High	Canadian mining companies' Peruvian operations have been subject to scrutiny from Canadian civil society, the Canadian CORE (Ombudsperson for Responsible Enterprise), and international human rights organizations. Peruvian community and water rights are particularly sensitive — proactive and transparent community engagement is essential.

Procurement Pipeline

The Canada-Peru FTA includes a government procurement chapter providing Canadian companies with non-discriminatory access to above-threshold Peruvian federal procurement. Peru's public procurement system (managed by OSCE — Organismo Supervisor de las Contrataciones del Estado) covers central government, regional government, and state enterprise procurement. Key opportunities for Canadian companies include mining-related public sector contracts, infrastructure development, and technology and services procurement.

🔗SEACE — Peru Government Procurement PortalPeru's government procurement is managed through SEACE (Sistema Electrónico de Contrataciones del Estado) at seace.gob.pe. The FTA procurement chapter provides Canadian suppliers with access rights to above-threshold Peruvian federal tenders. TCS Lima can assist with SEACE navigation and procurement qualification for Canadian companies.🔗TCS Peru — LimaThe Trade Commissioner Service Lima office has priority programming in mining and critical minerals, clean energy, infrastructure, and agri-food. TCS Lima works closely with EDC and FinDev Canada to support Canadian companies across the investment and trade continuum in the Peruvian market.10

Government Signals

📄Canada-Peru FTA — Active ISDS FrameworkThe Canada-Peru FTA's investment protection chapter (ISDS) has been one of the more actively used investment protection mechanisms among Canada's bilateral FTAs. Canadian mining companies have invoked or referenced ISDS provisions in disputes with the Peruvian government over project permitting, social conflict responses, and licence cancellations. ISDS provides a meaningful backstop for Canadian investment but proceedings are lengthy (often 4+ years) and outcomes are uncertain.📄Canada's Critical Minerals Strategy — Peru as Priority Copper SourceCanada's Critical Minerals Strategy explicitly identifies copper as a priority mineral and Peru as one of the world's most important copper-producing countries. The strategy's supply chain security objectives align with Canadian mining investment in Peru — the federal government's interest in securing reliable copper supply for North American EV and clean energy manufacturing creates policy support for Canadian companies' Peruvian mining operations.📄CORE — Peru Ongoing CasesCanada's CORE (Canadian Ombudsperson for Responsible Enterprise) has active or completed cases involving Canadian mining companies in Peru. Canadian companies with Peruvian operations should review CORE's published guidance on responsible mining practice in high-risk contexts and ensure their community consultation, human rights impact assessment, and environmental management practices meet CORE's standards.11

Sources

1. Statistics Canada, Table 12-10-0011-01: International merchandise trade by country, 2024 annual data.
2. International Monetary Fund, World Economic Outlook, October 2024: Peru GDP, growth, inflation data.
3. INEI (Peru National Institute of Statistics): GDP, employment, trade data, 2024.
4. Global Affairs Canada, Chief Economist Branch: Canada-Peru bilateral trade analysis, 2024.
5. Canada-Peru Free Trade Agreement: text, tariff schedules, investment chapter, 2009.
6. HudBay Minerals: Annual report 2024; Constancia operations, Peru.
7. USGS Mineral Resources Program: Peru copper production ranking, 2024.
8. Canadian Ombudsperson for Responsible Enterprise (CORE): Peru cases, 2024.
9. Moody's Investors Service / S&P Global Ratings: Peru sovereign credit rating, 2024.
10. Trade Commissioner Service, Peru Country Market Report, 2024–2025.